The strongest emotion in the world is fear. The coronavirus has scared many people with good reason. The fear of the unknown (and no one really knows what the fallout of this horrible disease will be) creates anxiety, distress, and panic when taken to the extreme.

I understand but am trying to remain calm and ensure our members their money is safe and that our electronic systems are working. We have seen situations of our members and bank customers withdrawing large amounts of cash or moving funds in excess of the $250,000 insurance limit into multiple financial institutions.

The fact is the financial services industry has never been stronger. The Great Recession of 2008 resulted in stronger bank capital requirements. On the payment systems front, home banking, mobile banking, e-deposits, person-to-person transfers, electronic debits and credits, and bill payment have been working uninterrupted since the virus was discovered. In addition, all six of your Credit Union’s branches have remained open to serve our members during this very difficult time.

The other issue creating fear is the stock market which directly affects many employee retirement plans. We have seen these market shocks many times before. Since 1946, there have been eight bear market losses in excess of 25%. The subsequent bull market gain has averaged 321%, half of those gains in excess of 400%. Investors who have embraced a long-term horizon with a consistent strategy have generally been successful by remaining invested through any upheaval. In other words, what goes down comes back up and stays at that higher plateau. Other than rebalancing the portfolio which should be done on a periodic basis regardless of current market conditions, we recommend staying the course by keeping a long-term perspective.

My wife always looks for the silver lining even in the direst of circumstances. That silver lining in the economic short-term is oil prices at almost an all-time low. Some energy experts are even predicting gas prices in some states dipping under $1.00. Of course, many of us won’t get to take advantage of the cheap prices because of travel restrictions and requirements to work from home. However, gas prices are a major factor in the consumer price index, which is a fancy term for the inflation rate.

As prices in the marketplace go down, we experience a recession for which we are way overdue. However, the way an economy is supposed to work, the lower prices and interest rates spur both consumer and business spending which generates the majority of our economic activity. The government spending in the form of a relief bill takes the place of consumer spending on a temporary basis until consumers start spending again. This economic cycle may be frustrating at times like now, but it keeps our economy working properly and not permanently dependent on the government.

Of course, the silver lining in the long-term is a vaccine that will make COVID-19 go away. We can hope, which is another strong emotion, this terrible affliction affects as few people as possible so we can move on with our lives. At least we won’t have to worry about our money being safe.